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Understanding Risk Avoidance Strategies

Risk avoidance is a risk management strategy that seeks to eliminate potential hazards, activities, or exposures that pose risks to an organization's assets. It aims to proactively avoid compromising events rather than reactively managing their damages. While completely avoiding all risks is unrealistic, risk avoidance techniques include establishing policies and procedures, training, technology implementations, and discontinuing specific actions or exposures to hazards to deflect threats and minimize vulnerabilities.

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139 views2 pages

Understanding Risk Avoidance Strategies

Risk avoidance is a risk management strategy that seeks to eliminate potential hazards, activities, or exposures that pose risks to an organization's assets. It aims to proactively avoid compromising events rather than reactively managing their damages. While completely avoiding all risks is unrealistic, risk avoidance techniques include establishing policies and procedures, training, technology implementations, and discontinuing specific actions or exposures to hazards to deflect threats and minimize vulnerabilities.

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sabrinaa
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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Risk avoidance

Risk avoidance is the elimination of hazards, activities and exposures that


can negatively affect an organization's assets.

Whereas risk management aims to control the damages and financial


consequences of threatening events, risk avoidance seeks to avoid
compromising events entirely.

While the complete elimination of all risk is rarely possible, a risk avoidance strategy
is designed to deflect as many threats as possible in order to avoid the costly and
disruptive consequences of a damaging event. A risk avoidance methodology attempts
to minimize vulnerabilities which can pose a threat. Risk avoidance and mitigation
can be achieved through policy and procedure, training and education and technology
implementations.

Risk avoidance is Technique of risk management that involves (1) taking steps to
remove a hazard, (2) engage in alternative activity, or (3) otherwise end a
specific exposure. Also called avoidance of risk.

Risk avoidance is a risk treatment that avoids,


sidesteps or discontinues the actions that trigger a
particular risk. The following are a few examples:

1. Business Strategy
A bank considers expanding its products to include
financial derivatives. After completing a business plan,
the bank determines that the plan is risky and decides
not to pursue the strategy.

2. Investing
An investment adviser recommends a stock to a client.
The client reads the company's most recent financial
report and finds it's a complex business with difficult to
understand risk factors and decides against the
investment.

3. Health & Safety


A company shuts down a construction site in bad
weather to avoid the risk that someone will get hurt.

4. Information Security
A retailer discontinues collection of personal data such
as customer's ages and telephone numbers to avoid the
risk that such data would be stolen in an information
security incident.

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